6200 proving difficult for Nifty to sustain: Fayeza Hafizee

Fayeza Hafizee, Vice President, Institutional SalesIntime Spectrum Securities Ltd, in a chat with ET Now talks about market and stocks.

You did see a quick breather in yesterday's trading session and before that but not too much of a deep correction really. Do you believe that retail participation still needs to kick in in full swing and they are just trading on the back of fear of missing the rally right now?

Retail participation needs to get broader but the last one week or so, retail participation has been coming in. You are seeing that midcaps are doing much better because given the large caps have rallied, a lot of people are very hesitant to get into stocks at these levels but are looking for midcap players.

Even yesterday, you saw a breather on the index where if you see the broader market, you actually saw lot of stocks do very well and that is somewhat the case today as well. 6200 is proving a little difficult for Nifty to sustain but at the same time, there is no mood in the market to be falling.

I do not think people are willing to be selling yet. So it is more like ride the trend and keep looking at what would be new winners which is what the market is doing right now.

Real estate has been an underperformer ever since that downfall that you had in the markets and now you are seeing a nice bounce back even in terms of IPOs hitting the markets, fresh QIPs planned. What do you make of the real estate pack and also metals especially?

I will take metals first. Most of the metal stocks -I am leaving aside a Hindalco or so - are much below the levels that they have seen even in 2010. So that is what people are looking at. They are looking at what are the laggards or what are the underperformers and let's look into these because getting into banking for example is difficult. So let's look at metals. Also, with the dollar weakening, there is a usual belief that commodities strengthen and that is what is also driving the foray into metals.

As far as real estate is concerned, the fact that at least when you look around in the Mumbai property market, rates of flat, etc, are going up very much. You are seeing a lot of news on property prices rising across the country and that is finally getting people to believe that real estate should also get its due.

Stock prices are significantly lower. Why take the fall of the markets. Even an year ago, you had stock prices at higher levels. So there is probably a lot of steam left to go as what the market believes and you are seeing some activity in real estate on account of that.

Today you are also seeing a good move in some of those shipping counters like SCI. The Cabinet has cleared its divestment plans to the tune of about Rs 1300 crore. Do you have any take on that space?

Again, it is little to do with the fact that trade moment flows around the world are strengthening and that should lead to the cost of freight going up. But more importantly, it comes down to less located sectors which have been ignored and let's see if we can pick up stocks. So all these stocks are significantly, again, underperformers.

Even an SCI, which has moved up post the news of the IPO, is an underperformer to the market. It is really a matter of people looking to see where else can we put money and perhaps make money there and also somewhere it does limit your downside if you are looking at underperformers over and getting into the high momentum stocks.